KARACHI, June 11: The Karachi Stock Exchange (KSE) appreciated various measures announced in the Federal Budget 2007-2008, especially in the context of capital market development in the country.

A statement released by the KSE on Monday stated that the bourse reviewed the budget announced by the Minister of State for Finance before the National Assembly on June 9.

The Exchange noted that the size of the budget was the biggest in the history of the country. The KSE termed it a `growth-oriented’ budget.

Moreover, it was observed: “Acceptance of KSE proposals in relation to demutualisation will help in speedy, smooth transformation of corporatization process in order to make KSE comparable with global exchanges.”

The exchange stated that the grant of extension of capital gains exemption for further one year i.e. up to June 2008, in line with the earlier announcement made by the prime minister would further accelerate the foreign port folio investment in the country through the stock market.

The KSE stated that record amount was set aside for the Public Sector Development Programme, which along with various relief measures, was appreciable. Those included increase in minimum wages of workers, increase in pension and allowing subsidies on food items.

The Exchange said it also welcomes a number of new measures introduced for market development namely: (i) introduction of Group Taxation concept -- one of the persistent demand of the corporate sector which would help promote culture of consolidation of companies (ii) introduction of Real Estate Investment Trust -- a new form of investment tool, which would promote growth of capital market in future (iii) exemption of tax up till 2014 for private equity fund and (iv) exemption from tax on one time basis on corporatisation of individual membership, which would promote and encourage corporate culture and enhance growth of securities market in the country.